Receive Hungary 2-Year IRS to Fade This Week’s Rise, ING Says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Peter Virovacz (ING Groep NV)
Petr Krpata (ING Groep NV)
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UUID: 7947283
(Bloomberg) -- ING recommends receiving 2-year HUF interest-rate swaps, targeting move to 0.14% from 0.245% at initiation of trade, strategist Petr Krpata and economist Peter Virovacz write in emailed note.
- See this week’s selloff in Hungarian rates as a “great opportunity” to fade the move as spillovers from the external environment, related to more hawkish Fed and prospects of U.S. tax reform, should have a short-lived impact on the Hungarian curve
- “The National Bank of Hungary does not want the market to price in higher Bubor over the next two years and will step in should the market not correct itself”
- Expect 3-month Bubor to turn negative early 2018, prompting 2-year IRS to trade “at least below 0.15%”
- See central bank “likely ensuring the spread between overnight deposit rate and 3-month Bubor remains at 15-20bps”
- NOTE: Emerging-Market Sell-Off May Concern Dovish NBH: Inside Hungary
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Peter Virovacz (ING Groep NV)
Petr Krpata (ING Groep NV)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283